Emcore to Buy Intel's Telecom

Emcore Corp. is acquiring the telecommunications-related portion of Intel's Optical Platform Div. for $85 million, the companies announced today.

The telecom assets to be acquired include intellectual property, assets and technology relating to tunable lasers, tunable transponders, 300-pin transponders and integrable tunable laser assemblies, the companies said in a statement. The transaction is subject to regulatory review and certain other closing conditions and is expected to close in the first quarter of 2008.

Emcore, a provider of compound semiconductor-based components and subsystems for the broadband, fiber optic, satellite and terrestrial solar power markets, said the acquisition will enhance its presence in the telecommunications market segment and will expand its fiber optics product portfolio, allowing it to provide more telecom products.

"This transaction represents an important step for Emcore," said Reuben Richards, CEO, EMCORE. "We are excited about this acquisition and the opportunity to continue building upon Intel's leading tunable laser technology, strong product quality and history of customer service and satisfaction. The acquired assets should drive substantial product cost reduction, and the combined product portfolio should enable Emcore to gain a greater share of customer spending. Emcore estimates these assets will generate $65 million of revenue in 2008 and believes this acquisition will accelerate its path to earnings per share profitability as expected in mid- 2008."

Doug Davis, vice president of Intel's Digital Enterprise Group and general manager of its Embedded and Communications Group, said the companies will work together in the transition of the business after the closing.

Intel said the sale of these telecom-related assets will allow it to focus its investments on core communications and embedded market segments in line with its platform strategies. The company said is also exploring strategic alternatives for the enterprise-focused portion of its Optical Platform Div.

Emcore has two operating segments: Fiber Optics and Photovoltaics. Its Fiber Optics segment offers optical components, subsystems and systems that enable the transmission of video, voice and data over high-capacity fiber optic cables for high-speed data and telecommunications, cable TV and fiber-to-the-premises networks. Emcore's Photovoltaics segment provides solar products for satellite and terrestrial applications.

For more information, visit: www.emcore.com